Offshore drilling company Borr Drilling Limited, based in Bermuda, has confirmed the closing of the first tranche of a public issuance of ordinary shares aimed at raising a total of $102.5mn. This operation involves a total issuance of 50 million ordinary shares priced at $2.05 each.
First tranche of the operation completed
The first tranche of the operation consists of 30 million ordinary shares, corresponding to gross proceeds of $61.5mn. The second tranche, consisting of the remaining 20 million shares, is expected to be completed on August 7, 2025. However, this completion remains conditional upon the prior approval by Borr Drilling shareholders of an increase in the company’s authorised share capital.
This approval will be discussed at a special general meeting scheduled for August 6, 2025. Should the shareholders validate the proposal, the company will proceed with the final closing of this public issuance. The overall objective is therefore to strengthen its equity position within a context of increased financing needs.
Allocation and use of funds raised
According to information provided by Borr Drilling, funds raised will primarily finance general corporate purposes. These include servicing existing debt, covering capital expenditures, as well as funding the company’s working capital requirements.
Banks DNB Carnegie, Clarksons Securities, Citigroup and Goldman Sachs & Co. LLC are jointly acting as bookrunners on this financial operation. Their mandate notably covers the organisation and placement of shares on the concerned international financial markets.
Immediate effects on capital structure
Following this first phase of issuance, the share capital of Borr Drilling Limited increased by $3mn to reach a total amount of $26,622,486.60. The capital now consists of 266,224,866 ordinary shares, each with a nominal value of $0.10.
This issuance represents a significant step for the company’s financial strategy, enabling it notably to meet short-term commitments while ensuring adequate financial flexibility in the medium term. This operation takes place amid a global context of increasing demand for offshore drilling services.
